Both mortgages discharged after Ch. 7, now qualify for FHA loan.

[OutofTime]

I found some info for FHA guidelines, you all have probably read them already but if not here it is. Go to FHA.com and look for the article on "FHA loan rules for borrowers after filing BK". Youll have to read all paragraphs to get the answer but it talks about a conventional loan included in a BK and the seasoning periods.

Hmm unless it's a different article, it states 2 years seasoning period minimum post discharge to apply for an FHA loan. I'm still in the process of getting pre-approved but with my current home IIB being used we may have to get a co-signer now so increase overall income to get approved for a higher loan.

[jpracer37]

I found some info for FHA guidelines, you all have probably read them already but if not here it is. Go to FHA.com and look for the article on "FHA loan rules for borrowers after filing BK". Youll have to read all paragraphs to get the answer but it talks about a conventional loan included in a BK and the seasoning periods.

[jpracer37]

Sorry for opening so many threads, truly my apologies for that. It was just that some of the stuff I was reading I had never even heard of, let alone have even thought of. The Underwriters and Loan Originator are the pros...I guess. I had already gone thru the process even before I got on here. Dont know why I got back on here but I did. Just like, for whatever reason I checked our CR at the beginning of the year and it finally sunk in that our mortgages weren't reaffirmed and they had been discharged, with a zero balance showing. Call it what you will, karma...big guy upstairs...IDK, I just started looking at FHA loans, seen the guidelines and thought...Hey I fit in to most of all those. So I went to bank, took BK paperwork, told loan officer what the situation was and...here I am, saying that right now we've put up earnest money and have had home inspection. Next Mon. is the appraisal. like I said sorry for all the new threads, I get one idea going and I go with it. I would like to ask loan officer how our BK situation was playing out in the process but dont want jinx it. I will keep everyone posted as to how our situation goes to give everyone a ray of hope. God Bless you all.

[LadyInTheRed]

I just merged jpracer137's 3 threads on the same topic into one.

[dspii]

the little woman went into bank of america today to make our house payment. The teller informed her that we are eligable to refi our home. We didnt reafirm it in our bankruptcy, but we have never been late on that payment since buying it. I just wonder if that is their way of putting us back on the hook?

yes......

[barnhartred]

The little woman went into Bank of America today to make our house payment. The teller informed her that we are eligable to refi our home. We didnt reafirm it in our bankruptcy, but we have never been late on that payment since buying it. I just wonder if that is their way of putting us back on the hook?

[tobee43]

my fingers are crossed for you too!! i so hope you can break the cycle! it will so wonderful if it goes through i really think it's about time these lenders start letting some of these empty homes get filled up again with love and chicken soup again!

[ValleYum]

Like I told you in the other thread, I do hope you get your new place! Crossing fingers and toes!

[LadyInTheRed]

My fingers are crossed!

[jpracer37]

Keep this mind. I'm a small person in the mortgage world, Ive seen posts about buy and bail and everything else. That issue came up I believe in 2007 or so. I actually thought we reaffirmed our mortgages until i checked our credit reports this year and seen they were discharged and IIB w/ a zero balance. Even called bk lawyer asked him about it. He said they hardly ever reaffirm even though a letter of intent was signed. So i started looking at fha loan, went to bank and explained our bk7 and how the mortgages were not reaffirmed and were IIB. The loan originator said all we can do is fill out loan papers. Thats what i did. The steps i went thru was providing last yrs taxes, last yrs check stubs, all our new debt we aquired, had to include current mortgages, a written explanation for bk7, turned in a copy of bk7 paperwork. All new debts, current mortgages were listed with balances. all this was then turned into underwriter. Next, i had to do a conference call WITH current mortgage companies, so i would say underwriter knows that we are still living in current home that had a mortgage that was discharged and IIB. This underwriter has had our papers since April of this year, nothing has been asked about or anything said about can we keep both mortgages up to date. The underwriter has the info of both mortgages and what the balance is both and what the new loan is for. I listed new property as principal residence and still they didnt ask about disposition of current. I didnt list it as rental property nor will it be. If the issue of buy and bail is there and if it looks like buy and bail looks like underwriter wouldve comeback quickly with a resounding NO. Especially since fha has it in their guidelines. Its 2012 and im 4 yrs into all of the mess with the housing. Seems like with all the stringent guidlines and all, I wouldve been shot down quick. So far everything is on tract. The underwriter sent paperwork back to bank and said we could start looking, thats what we've done, and have put down earnest money and paid for appraisal of new house and had home inspection, nothing more...nothing less. I will keep eveyone posted, plz keep fingers crossed our neighborhood sux and we want out

[ValleYum]

K, guess you all just ignored what I said... np, I'll shut up after this.

But not all lenders are going to be following that. I think in jpracer and others situations it is working out differently because the house never actually foreclosed and they are still living in it. So, taking the date of the discharge as the 'foreclosure' date works because there is no actual foreclosure date.

People like me who actually had the home foreclose a year after discharge (or longer) will most likely not have the same experience (and I know other people on different forums who have done this). The foreclosure creates a new public record, so it won't go un-noticed. Trust me, my husband and I have been wanting to buy a home together for the last 2 years and I have been told time and again exactly what I posted in my thread at the top of this page. There are always exceptions to every rule, but I don't feel comfortable with everyone just sitting here going "YAY, WE ALWAYS THOUGHT IT WAS 3 YEARS POST FORECLOSURE AND ITS NOT!"

Don't shut up! I think you have very valid information.

I just found the post jpracer37 was referencing regarding the foreclosure timing and posted the link to it here.

I personally don't think his loan will actually get funded. I also believe that at some point on the 'eve of closing' the fact that he has another house (with first and second mortgages)will become an issue. Now if he can financially support both mortgages on his income, he may be able to slide through.

The OP has asked his question regarding the FHA BK and foreclosure 'seasoning' timelines for being able to buy a house in several ways in several threads over the last few days.

Good to see you around Amy!

[LadyInTheRed]

Wish i could remember the link to where i found the info, but there was a poster on her whose sister was a direct endorsement underwriter, that gave her the same info i found. It said that if a mortgage was included, but not reaffirmed, even if there was no actual foreclosure in a BK7, they will go 3 yrs from DISCHARGE date. My wife and I are at 3.5. All i can say we turned in all necessary documents, explained our BK7 and situation with current mortgage in writing, PER the underwriter, not loan originator. Our credit history was checked, conference call with mortgage companies for late pay, current on loan, what balance was, all ordered PER underwriter. Had to give a years worth of taxes, and payroll. Got all info back from underwriter, which thru all of this knowing that we put in for FHA loan and knowing about BK7 and knowing that new loan would be primary residence still did not ask about disposition of current home, even though we are still paying on loan that was discharged, AND still gave us the ok on the new loan.

I missed that you said it had gone through underwriting. That is usually the last step before a loan is funded, but perhaps you raising the question caused it to get to underwriting early. I am still a little skeptical because we have had so many people in your situation think they are going to buy a house with a preapproved loan and then it falls through at the last minute. I don't think you answered one question: Do you have enough income to cover both mortgages?

I hope you will report soon that the loan funded and your escrow closed. If you don't have the income to cover both mortgages, we would then have the answer about FHA guidelines that has been very illusive here. That is, if a homeowner files BK, more than 3 years have passed since the mortgage was discharged in BK, but there has been no foreclosure, can the homeowner get approved for a mortgage to buy a new home without the income to show he/she can handle both mortgage payments?

The information from last2cents gave hope, but we still have not heard of anyone actually successfully closing a new loan in these circumstances. And, I remember another thread after that one where somebody who sounded equally quailfied to know contradicted the information. As somebody already suggested, the problem could be different interpretations by individual underwriters. Maybe last2cents' sister is in the minority with her interpretation, even if it is correct. Or, as also suggested, maybe most lenders apply strickter standards than the FHA guidelines require, especially in the current lending environment. Or maybe jayracer37 has a credit history that puts him at an advanatage over others. There are so many factors that it is hard to know for sure. If jayracer37 gets this loan, we will know that it is possible and many people will want to know who his lender is.

[tobee43]

LOL!!! Indeed! That is the question...and if anybody raises their hand, we need to know what lender they used.

[Amy26]

LOL!!! Indeed! That is the question...and if anybody raises their hand, we need to know what lender they used.

[tobee43]

Right, gotchya... I'm with ya too.

Technically, all mortgages are discharged in your BK unless you reaffirm them. The question then becomes do you keep paying on the home anyways and stay living in it or do you move on and let it foreclose. So, no a foreclosure is not a discharge... The BK discharge removes your liability to the note. The foreclosure changes ownership and can happen any time after the bankruptcy is discharged.

that's exactly how i understand it.

i guess we can ask this question. can i see a show of hands of how many people know someone, or themselves, that had a bk and included their house and it was discharged, got a new mortgage within the last year?

hands please...LOL!!!